SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------------------
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996
OR
[ ] TRANSACTION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
Commission file number 1-7283
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
REGAL-BELOIT CORPORATION PERSONAL SAVINGS PLAN
B. Name of the issuer of the securities held pursuant to the plan and the
address of its principal executive office:
REGAL-BELOIT CORPORATION
200 STATE STREET
BELOIT, WI 53511
<PAGE>1
REQUIRED INFORMATION
Regal-Beloit Corporation Personal Savings Plan ("Plan") is subject to the
Employee Retirement Income Security Act of 1974 ("ERISA"). Therefore, in
lieu of the requirements of Items 1-3 of Form 11-K, the financial statements
and schedules of the Plan for the two fiscal years ended December 31, 1995 and
1996, which have been prepared in accordance with the financial reporting
requirements of ERISA, are attached hereto as Appendix 1 and incorporated
herein by this reference.
SIGNATURES
The Plan. Pursuant to the requirements of the Securities and Exchange Act of
1934, the trustees (or other persons who administer the employee benefit plan)
have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
REGAL-BELOIT CORPORATION PERSONAL SAVINGS PLAN
By: Regal-Beloit Corporation Personal Savings Plan Administrative Committee
KENNETH F. KAPLAN
- --------------------------------- June 25, 1997
Kenneth F. Kaplan
FRITZ HOLLENBACH
- --------------------------------- June 25, 1997
Fritz Hollenbach
<PAGE>2
APPENDIX 1
REGAL-BELOIT CORPORATION PERSONAL SAVINGS
FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1996,
SUPPLEMENTAL SCHEDULES AS OF AND FOR THE YEAR ENDED DECEMBER 31, 1996 AND
INDEPENDENT AUDITORS' REPORT
<PAGE>3
REGAL-BELOIT CORPORATION
------------------------
PERSONAL SAVINGS PLAN
---------------------
FINANCIAL STATEMENTS AS OF DECEMBER 31, 1996 AND 1995
-----------------------------------------------------
TOGETHER WITH REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
------------------------------------------------------
<PAGE>4
REGAL-BELOIT CORPORATION
------------------------
PERSONAL SAVINGS PLAN
---------------------
FINANCIAL STATEMENTS
--------------------
DECEMBER 31, 1996 AND 1995
--------------------------
TABLE OF CONTENTS
-----------------
Page
----
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS 6
FINANCIAL STATEMENTS
Statements of Net Assets Available for Plan Benefits December 31, 1996
and 1995 8-9
Statements of Changes in Net Assets Available for Plan Benefits for
the Years Ended December 31, 1996 and 1995 10-11
NOTES TO FINANCIAL STATEMENTS 12-15
SCHEDULES SUPPORTING FINANCIAL STATEMENTS
Schedule I: Item 27a Schedule of Assets Held for Investment
Purposes December 31, 1996 16
Schedule II: Item 27d Schedule of Reportable Transactions for the
Year Ended December 31, 1996 17
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS 18
<PAGE>5
ARTHUR ANDERSEN LLP
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Plan Administrator of the
Regal-Beloit Corporation Personal Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits, with fund information, of Regal-Beloit Corporation Personal Savings
Plan as of December 31, 1996 and 1995, and the related statements of changes
in net assets available for plan benefits, with fund information, for the
years then ended. These financial statements and the supplemental schedules
referred to below are the responsibility of the plan's management. Our
responsibility is to express an opinion on these financial statements and
supplemental schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits, with fund
information, of the plan as of December 31, 1996 and 1995, and the changes in
its net assets available for plan benefits, with fund information, for the
years then ended in conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules as listed in
the accompanying table of contents are presented for the purpose of additional
analysis and are not a required part of the basic financial statements, but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The fund information in the statement of net assets
available for plan benefits and the statement of changes in net assets
available for plan benefits is presented for purposes of additional analysis
rather than to present the net assets available for plan benefits and changes
<PAGE>6
-2-
and changes in net assets available for plan benefits of each fund. The
supplemental schedules and fund information have been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in our
opinion, are fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
ARTHUR ANDERSEN LLP
-----------------------------------
ARTHUR ANDERSEN LLP
Milwaukee, Wisconsin,
April 14, 1997.
<PAGE>7
REGAL-BELOIT CORPORATION
------------------------
<TABLE>
<CAPTION>
PERSONAL SAVINGS PLAN
---------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
---------------------------------------------------
AS OF DECEMBER 31, 1996
-----------------------
Fund Information
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed Company
Income Equity Stock Bond Balanced Opportunity Loan Combined
ASSETS Fund Fund Fund Fund Fund Fund Fund Plan Total
------ --------- --------- --------- --------- --------- ----------- ------- --------------
RECEIVABLES:
Employee contributions $ 3,763 $ 2,141 $ 6,236 $ 1,831 $ 2,519 $ 5,366 $ - $ 21,856
Accrued interest and dividends 21,070 - - 3,193 - - - 24,263
---------- ---------- --------- --------- ---------- ---------- ------- --------------
24,833 2,141 6,236 5,024 2,519 5,366 - 46,119
INVESTMENTS AT FAIR VALUE:
Cash and cash equivalents 15,582 - - - - - - 15,582
M&I Employee Benefit Stable
Principal Fund 4,164,108 - - - - - - 4,164,108
Marshall Stock Fund - 1,613,715 - - - - - 1,613,715
Regal-Beloit Corporation
Common Stock - - 5,141,276 - - - - 5,141,276
Marshall Intermediate Bond Fund - - - 634,175 - - - 634,175
Fidelity Balanced Fund - - - - 1,104,055 - - 1,104,055
Strong Opportunity Fund - - - - - 2,452,865 - 2,452,865
---------- ---------- ---------- -------- ---------- ---------- --------- -----------
4,179,690 1,613,715 5,141,276 634,175 1,104,055 2,452,865 15,125,776
LOANS TO PARTICIPANTS - - - - - - 800,087 800,087
---------- ---------- ---------- -------- ---------- ---------- --------- -----------
Total assets 4,204,523 1,615,856 5,147,512 639,199 1,106,574 2,458,231 800,087 15,971,982
---------- ---------- ---------- -------- ---------- ---------- --------- -----------
LIABILITIES
-----------
DUE TO (FROM) BROKERS 5,664 3,111 (3,399) 2,829 3,286 19,910 - 31,401
ACCRUED ADMINISTRATIVE FEES 813 315 1,003 124 215 478 152 3,100
---------- ---------- ----------- -------- ---------- ---------- -------- -----------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS $4,198,046 $1,612,430 $5,149,908 $636,246 $1,103,073 $2,437,843 $799,935 $15,937,481
========== ========== ========== ======== ========== ========== ======== ===========
<FN>
The accompanying notes are an integral part of this statement
</FN>
</TABLE>
<PAGE>8
REGAL-BELOIT CORPORATION
------------------------
<TABLE>
<CAPTION>
PERSONAL SAVINGS PLAN
---------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
---------------------------------------------------
AS OF DECEMBER 31, 1995
-----------------------
Fund Information
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed Company
Income Equity Stock Bond Balanced Opportunity Loan Combined
ASSETS Fund Fund Fund Fund Fund Fund Fund Plan Total
------ ---------- ---------- ---------- -------- -------- ----------- -------- -----------
RECEIVABLES:
Employee contributions $ 31,766 $ 7,260 $ 22,177 $ 4,579 $ 8,452 $ 14,488 $ - $ 88,722
Employer contributions (Note 3) 41,610 11,180 29,865 6,000 7,195 17,350 - 113,200
Accrued interest and dividends 19,950 1 22,672 3,270 4 19 3,025 48,941
---------- ---------- ---------- -------- -------- ---------- -------- -----------
93,326 18,441 74,714 13,849 15,651 31,857 3,025 250,863
INVESTMENTS AT FAIR VALUE:
Cash and cash equivalents - - - - - - 366 366
Marshall Money Market Fund - - 59,147 - 5 - - 59,152
M&I Employee Benefit Stable
Principal Fund 3,819,912 - - - - - - 3,819,912
Marshall Stock Fund - 1,379,462 - - - - - 1,379,462
Regal-Beloit Corporation
Common Stock - - 4,890,792 - - - - 4,890,792
Marshall Intermediate
Bond Fund - - - 611,098 - - - 611,098
Fidelity Balanced Fund - - - - 914,930 - - 914,930
Strong Opportunity Fund - - - - - 1,830,176 - 1,830,176
---------- ---------- ---------- -------- -------- ---------- -------- -----------
3,819,912 1,379,462 4,949,939 611,098 914,935 1,830,176 - 13,505,888
LOANS TO PARTICIPANTS - - - - - - 530,254 530,254
---------- ---------- ---------- -------- -------- ---------- -------- -----------
Total assets 3,913,238 1,397,903 5,024,653 624,947 930,586 1,862,033 533,645 14,287,005
---------- ---------- ---------- -------- -------- ---------- -------- -----------
LIABILITIES
-----------
ACCRUED ADMINISTRATIVE FEES 12,750 5,178 5,312 1,477 1,331 2,755 - 28,803
---------- ---------- ---------- -------- -------- ---------- -------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $3,900,488 $1,392,725 $5,019,341 $623,470 $929,255 $1,859,278 $533,645 $14,258,202
========== ========== ========== ======== ======== ========== ======== ===========
<FN>
The accompanying notes are an integral part of this statement.
</FN>
</TABLE>
<PAGE>9
<TABLE>
REGAL-BELOIT CORPORATION
------------------------
<CAPTION>
PERSONAL SAVINGS PLAN
---------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
--------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1996
------------------------------------
Fund Information
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed Company
Income Equity Stock Bond Balanced Opportunity Loan Combined
Fund Fund Fund Fund Fund Fund Fund Plan Total
---------- ---------- ---------- -------- ---------- ----------- -------- -----------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Employee contributions $ 592,494 $ 176,998 $ 579,689 $ 79,647 $ 143,344 $ 348,830 $ - $ 1,921,002
Employee rollovers 9,707 11,434 102,943 560 3,859 18,359 - 146,862
Investment income-
Interest and dividends 240,364 24,193 1 38,204 48,213 15,163 66,883 433,021
Net appreciation in
fair market value
of investments - 190,946 (369,552) (21,633) 47,269 339,055 - 186,085
---------- ---------- ----------- --------- ---------- ---------- -------- -----------
Total additions 842,565 403,571 313,081 96,778 242,685 721,407 66,883 2,686,970
---------- ---------- ----------- --------- ---------- ---------- -------- -----------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Administrative fees 17,191 16,404 3,428 6,730 4,259 10,814 152 58,978
Benefits paid to
participants 376,859 154,926 216,522 35,211 44,913 85,546 34,736 948,713
---------- ---------- ----------- ---------- --------- ---------- -------- -----------
Total deductions 394,050 171,330 219,950 41,941 49,172 96,360 34,888 1,007,691
---------- ---------- ----------- ---------- --------- ---------- -------- -----------
TRANSFERS BETWEEN FUNDS (150,957) (12,536) 37,436 (42,061) (19,695) (46,482) 234,295 -
NET ASSETS AVAILABLE FOR
PLAN BENEFITS:
Beginning of year 3,900,488 1,392,725 5,019,341 623,470 929,255 1,859,278 533,645 14,258,202
---------- ---------- ---------- -------- ---------- ---------- -------- -----------
End of year $4,198,046 $1,612,430 $5,149,908 $636,246 $1,103,073 $2,437,843 $799,935 $15,937,481
========== ========== ========== ======== ========== ========== ======== ===========
<FN>
The accompanying notes are an integral part of this statement.
</FN>
</TABLE>
<PAGE>10
<TABLE>
REGAL-BELOIT CORPORATION
------------------------
<CAPTION>
PERSONAL SAVINGS PLAN
---------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
--------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1995
------------------------------------
Fund Information
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed Company
Income Equity Stock Bond Balanced Opportunity Loan Combined
Fund Fund Fund Fund Fund Fund Fund Plan Total
---------- ---------- ---------- --------- ---------- ----------- --------- ----------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Employee contributions $ 645,378 $ 165,364 $ 493,157 $ 81,512 $ 147,293 $ 271,763 $ - $1,804,467
Employee rollovers 7,371 34,336 25,901 10,381 1,569 25,449 - 105,007
Employer contributions (Note 3) 41,610 11,180 29,865 6,000 7,195 17,350 - 113,200
Investment income-
Interest and dividends 228,029 19,647 87,259 37,035 37,052 10,387 46,705 466,114
Net appreciation in
fair market value
of investments - 321,903 1,729,938 42,080 78,792 345,657 - 2,518,370
----------- ----------- ---------- --------- ---------- --------- --------- ----------
Total additions 922,388 552,430 2,366,120 177,008 271,901 670,606 46,705 5,007,158
----------- ----------- ---------- --------- ---------- --------- --------- ----------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Administrative fees 29,350 13,992 11,306 4,377 3,388 5,920 - 68,333
Benefits paid to participants 343,922 120,147 185,056 20,768 43,136 34,141 45,408 792,578
----------- ----------- ---------- --------- ---------- --------- --------- ----------
Total deductions 373,272 134,139 196,362 25,145 46,524 40,061 45,408 860,911
----------- ----------- ---------- --------- ---------- --------- --------- ----------
TRANSFERS BETWEEN FUNDS (28,154) (5,093) 113,305 (4,794) (100,347) 55,890 (30,807) -
NET ASSETS AVAILABLE FOR
PLAN BENEFITS:
Beginning of year 3,379,526 979,527 2,736,278 476,401 804,225 1,172,843 563,155 10,111,955
----------- ----------- ---------- --------- --------- ---------- ---------- -----------
End of year $3,900,488 $1,392,725 $5,019,341 $623,470 $929,255 $1,859,278 $533,645 $14,258,202
=========== =========== ========== ========= ========= ========== ========== ===========
<FN>
The accompanying notes are an integral part of this statement.
</FN>
</TABLE>
<PAGE>11
REGAL-BELOIT CORPORATION
------------------------
PERSONAL SAVINGS PLAN
---------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
DECEMBER 31, 1996 AND 1995
--------------------------
(1) Description of the Plan-
------------------------
The following description of the Regal-Beloit Corporation Personal Savings
Plan (the "Plan") is provided for general information purposes only. More
complete information regarding the Plan's provisions may be found in the
Plan document.
General-
--------
The Plan is a defined contribution plan established on July 1, 1988, to
allow eligible employees to defer compensation as permitted under Section
401(k) of the Internal Revenue Code. The Plan covers substantially all
employees of Regal-Beloit Corporation (the "Company") with at least six
months of service with the Company and who are not covered under separate
plans. The Plan is subject to the U.S. Employee Retirement Income Security
Act of 1974 ("ERISA").
Participant accounts-
---------------------
Participants at all times have a fully vested interest in their individual
and Company contribution accounts. Distributions of participants' accounts
can be made in lump-sum amounts upon normal retirement from the Company,
upon the death of the participant and upon termination of employment.
Withdrawals for financial hardship can be made in accordance with certain
governmental regulations.
Earnings on the investments of the Trust are allocated to the participants'
accounts based on the proportion of the participant's account to the total
of all participants' accounts at the end of each business day.
Investment options-
-------------------
Participants of the Plan may direct their contributions into the following
funds held by Marshall & Ilsley Trust Company (the "Trustee"):
<PAGE>12
(a) Fixed Income Fund
-----------------
Amounts allocated to the Fixed Income Fund are invested in a mutual fund
with securities and obligations which produce a fixed rate of investment
return, including but not limited to, United States government
securities, corporate bonds, notes, debentures or any fixed income trust
fund or funds maintained by the Trustee or its affiliates or other
banks, or any contracts issued by insurance companies or other financial
institutions.
(b) Equity Fund-
------------
Amounts allocated to the Equity Fund are invested in a mutual fund with
equity type securities, without regard to whether such investments pay
dividends or other forms of return, including but not limited to, common
stock or other securities or obligations convertible or exercisable into
equity securities or any mutual fund or equity common trust fund or
funds maintained by the Trustee or its affiliate or other banks.
(c) Company Stock Fund-
-------------------
Amounts allocated to the Company Stock Fund are invested in Regal-Beloit
Corporation common stock. Investments in, sales of, and reinvestment in
Company Stock shall be made on the open market, from the Company or its
affiliates or in negotiated transactions with independent parties
pursuant to the direction of the Plan Administrator.
(d) Bond Fund-
----------
This fund invests in a mutual fund which holds Government and Corporate
bonds to generate a high level of current income while minimizing market
volatility.
(e) Balanced Fund-
--------------
Amounts allocated to the Balanced Fund seek income, consistent with
preservation of capital. The Fund invests in a mutual fund with a
diversified portfolio of high yielding securities, including common
and preferred stocks, and bonds. At least 25% of its assets will
always be invested in fixed income securities.
(f) Opportunity Fund-
-----------------
Amounts allocated to the Opportunity Fund are invested in a mutual fund
which seeks to provide capital appreciation by investing in growth and
aggressive growth stocks. At least 70% of the fund's assets will always
be invested in the common stocks of growth companies, generally
described as small to mid-size.
<PAGE>13
Investments in the Equity Fund, Fixed Income Fund, Balanced Fund and
Opportunity Fund are effected in the open market or through collective
investment funds of the Trustee.
(g) Loan fund-
----------
This fund permits a participant to borrow from their individual account
an amount limited to 50% of their account balance to a maximum of
$50,000. Interest at prevailing market rates (ranging from 8% to 11%
as of December 31, 1996) is charged on the loan, but is credited as
income to the individual participant's account. Only one loan is
allowed at any one time, and the maximum term is five years, unless the
loan is used for the acquisition of the participant's primary residence,
for which the term of the loan may be extended beyond the five year
period.
Plan termination-
-----------------
The Company may terminate the Plan at any time. In the event of
termination, or complete discontinuance of contributions, the rights of
all participants to their accounts shall become fully vested and
nonforfeitable. Distribution upon termination or complete discontinuance
of contributions will be made in a manner selected by the Trustee.
Presently, the Company has no intention to terminate the Plan.
(2) Significant Accounting Policies-
--------------------------------
Basis of accounting-
--------------------
The financial statements have been prepared on the accrual basis of
accounting.
Use of accounting estimates-
----------------------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan's management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and reported amounts of revenues and expenses
during the reporting periods. Actual results could differ from these
estimates.
Administrative expenses-
------------------------
The Plan pays all administrative expenses.
(3) Funding Policy-
---------------
The Plan provides for discretionary Company contributions subject to the
Board of Director's authorization to be allocated to the individual
participant's account based on the proportion of a participant's
compensation to the total compensation of all participants. The Board did
<PAGE>14
not authorize a discretionary contribution in 1996. In October 1995, the
Company's Board of Directors approved an incentive contribution of $100 to
each employee participating or enrolled to participate in the Plan as of
December 31, 1995.
All other contributions have been made on a voluntary basis by employees.
Participants who contribute may elect to have their contributions invested
in increments of 10% among any combination of the funds. This election can
be changed on any business day, but only once per calendar quarter.
(4) Investments-
------------
Investments are stated at fair market value as determined by the Trustee by
reference to published market data.
Net realized and unrealized appreciation (depreciation) is recorded in the
accompanying statements of changes in net assets as net appreciation in
fair market value of investments.
(5) Income Tax Status-
------------------
The Plan has received a favorable tax determination letter dated February 4,
1997, indicating that the Plan is a qualified plan under Sections 401(a)
and 401(k) of the Internal Revenue Code and is exempt from Federal income
taxes under Section 501(a) of the Code. There have been no Plan amendments
adopted since the last tax determination letter. In the opinion of the
Company's management, the Plan remains tax-exempt.
(6) Related Party Transactions-
---------------------------
Plan assets are invested in common funds of the Trustee. In addition, the
Plan invests in securities of the Company. These transactions are not
considered prohibitive transactions by statutory exemption under ERISA
regulations.
<PAGE>15
SCHEDULE I
REGAL-BELOIT CORPORATION
------------------------
<TABLE>
<CAPTION>
PERSONAL SAVINGS PLAN
---------------------
ITEM 27a SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
--------------------------------------------------------
DECEMBER 31, 1996
-----------------
<S> <C> <C> <C>
Number
of Market
Shares Description of Security Cost Value
- --------- ---------------------------------------------------- ------------ -----------
- Cash and cash equivalents $ 15,582 $ 15,582
256,133 Regal-Beloit Corporation Common Stock (*) 5,196,131 5,141,276
136,640 Marshall Stock Fund (*) 1,657,310 1,613,715
4,164,108 M&I Employee Benefit Stable Principal Fund (*) 4,164,108 4,164,108
67,180 Marshall Intermediate Bond Fund (*) 655,405 634,175
78,413 Fidelity Balanced Fund 1,045,566 1,104,055
69,565 Strong Opportunity Fund 2,435,757 2,452,865
----------- ----------
Total Investments $15,154,277 $15,125,776
=========== ===========
Loans to Participants (Interest Rates: 8% - 11%)(*) $ - $ 800,087
=========== ===========
<FN>
(*) Represents a party-in-interest
The accompanying notes are an integral part of this schedule.
</FN>
</TABLE>
<PAGE>16
<TABLE> SCHEDULE II
REGAL-BELOIT CORPORATION
------------------------
<CAPTION>
PERSONAL SAVINGS PLAN
---------------------
ITEM 27d SCHEDULE OF REPORTABLE TRANSACTIONS
----------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1996
------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Identity of Party Number Number Net
Involved/Description of Purchase of Selling Cost of Gain/
of Asset Purchases Price Sales Price Asset Sold (Loss)
- ---------------------------------------------- --------- ---------- ------ -------- ---------- --------
Regal-Beloit Corporation Common Stock(*) 97 $963,094 82 $501,288 $530,449 $(29,161)
M&I Employee Benefit Stable Principal Fund (*) 108 1,137,269 82 793,072 793,072 -
Strong Opportunity Fund 121 906,452 73 362,343 358,175 4,168
<FN>
(*) Represents a party-in-interest
The accompanying notes are an integral part of this schedule
</FN>
</TABLE>
<PAGE>17
Consent of Independent Public Accountants
-----------------------------------------
As independent public accountants, we hereby consent to the incorporation of
our report included in this form 11-K into the previously filed Form S-8
Registration Statement of Regal-Beloit Corporation (File No. 1-7283).
ARTHUR ANDERSEN LLP
------------------------------------
ARTHUR ANDERSEN LLP
Milwaukee, Wisconsin,
June 23, 1997.
<PAGE>18
